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Millennials vs. Gen Z - Interview with Bill Carter, Fuse Marketing

Most businesses nowadays are looking to Millennials for
influence on current marketing campaigns and that has been the norm for quite
awhile now. Amongst the largest concerns for this group of adults between the
ages 19-35, is the environment and how companies are contributing to
sustainability and recycling efforts. However, there is a new generation in town,
Gen Z, or those between the ages 13-18, who are taking a larger stock in social
change as opposed to those that precede them.

In order to get an accurate look at what drives the
purchase decisions of these up-and-comers, Fuse Marketing, a Vermont-based agency
specializing in teen, young adult, and millennial marketing, conducted an
in-depth survey specifically targeting Gen Z. The results of the survey can be
found here.

We asked Bill Carter, Partner at Fuse and generational
expert, about the trends for the youth market in the coming year, what
surprised him most about the survey, and the impact the findings will have on
the workplace.

Currently, what are some of the trends that
Fuse Marketing is seeing in the youth market?

Top
trends we are seeing in the youth market for 2016 include:

The
Everyday Influencer - The youth population has always put weight on peer validation,
but social apps like Instagram and Periscope have opened the doors to a new
kind of influence that can compete with even celebrity status.

Live
video streaming platforms – Meerkat, Periscope, etc. – are being used to
broadcast real-time and more brands will use this next year

The
growth of virtual reality suggests a shift in traditional “social media”, not
just application in video gaming experience.

Curated
commerce has become mainstream, especially within youth culture. We think this
form of boutique-like service will continue to grow in the youth market.

What has been the biggest challenge in cause
marketing in general? How have you seen that changing within the youth market?

In many
ways, cause marketing started as a means for brands to connect to Millennials
(now 19-36 years old.) If given a choice between similar brands, Millennials
supported brands that were doing relevant, legitimate work supporting social causes.
Largely because Millennials forced brands to make cause marketing a norm, Gen Z
(current teens) assume that most
companies are supporting causes. It takes a more unique approach to cause
marketing to get the attention of Gen Z.

How was this study on social activism and Gen
Z conducted and how did the study differ from what was delivered to
Millennials?

Most of
Fuse’s monthly studies are conducted via an online digital survey to a
representative panel of either teens or young adults. Qualified respondents for
the social activism survey were U.S. males and females between 13 and 18 years
old, with geographic representation. The sample size made the study statistically
valid. Results in this Gen Z study were compared similar online studies we
implemented to Millennials in the prior year.

What surprises you most about this study?

Gen Z’s
combined experiences have made them fiscally conservative, socially tolerant, and
environmentally aware – but none of that is surprising.The first big surprise in our study was that “the environment”
was not within Gen Z’s top 5 concerns when given a list of current topics. I
don’t believe it’s because Gen Z doesn’t care about the environment, but rather
it could be a result all the hard work by many in raising climate change and
other issues to mass public consciousness. In other words, Gen Z may assume
it’s a given that the environment is a critical concern and don’t think they
need to even call it out. The second surprise is how much trust Gen Z places in
brands that promote a social cause. Millennials use to ask brands to “prove”
their efforts were genuine, while Gen Z take corporate America at their word
when it comes to cause marketing.

What do you think is
causing the shift from environmentally focused Millennials to more socially
concerned Gen Z?

As a
generation born into a society of instability they have witnessed an average of
eighteen months between significant terrorist attacks since 1995 and three
economic recessions. That level of instability can have a dramatic effect on
today’s youth.

As a
result,teens seem to have more
control over themselves and displaying less risky behaviors. Gen Zers are more practical
thinkers versus dreamers. Practical issues like education, money and jobs are
top of mind.

Millennials
seemed to have been handed the task of fixing the environment, while the next
generation is focused on hacking their future education, careers and developing
the tools for safety and privacy. While the environment IS important to Gen Z,
they appear to respond to self-direction, and entrepreneurialism when in their
behaviors or concerns. We think perhaps in their aim to “get things done”
themes of education, universal acceptance of diversity and terrorism feel
“fixable” to the younger generation.

Why do you think Gen
Z is so socially conscious regarding their purchase decisions?

Gen Z has
a great social consciousness. It has become a generation of firsts: first Black
president, marriage equality in 50 states, and connectivity via almost global
internet access. There’s a real de-emphasis of categorization from Gen Z which
is giving way to a focus on humanity overall. Social consciousness in
purchasing is a bi-product of these values.

Why is Gen Z such an important part of
purchase decisions?

Though
many of Gen Z consumers receive an allowance, that weekly allowance results in
$44 billion in total disposable income. What’s more important is that in about
10 years, Generation Z will be our largest generation at precisely the time
they begin to graduate from college, enter the workforce, and have higher
disposable income.

What impact do you see these findings having
on the workplace both now and in the future?

Millennial
were focused on getting a college education to secure a good job. Gen Z is all
about entrepreneurism and controlling their own destiny. Traditional workplaces
may suffer based on Gen Z’s interest in being a “free agent,” but society will
benefit from their future innovations.